Banking
What Affected our 2017 Performance—Access Bank GMD
**Plans N459b Capital Raising
Group Managing Director of Access Bank Plc, Mr Herbert Wigwe, has attributed the not-too-impressive performance of the lender in 2017 to residual effects of macro-economic conditions of 2016.
Mr Wigwe gave this explanation at the bank’s Annual General Meeting (AGM) held this week in Lagos and attended by shareholders of the financial institution.
The bank chief, however, said the bank’s fundamentals remain strong and the group remains poised for sustainable growth in the coming periods.
According to him, despite the slight issue, Access Bank recorded well-rounded performance in 2017 with improvements in all key performance indices such as earnings per share, cost of risk and capital adequacy ratio, which are the major ratios financial institutions are measured by.
“Looking at the top-line of major banks, we are doing well. The new phase of our five-year corporate strategic plan will extensively cover what we could not achieve in the previous phase.
“We shall continue to invest in staff trainings in order to ensure our employees remain one of the best amongst their colleagues in the industry.
“As a customer friendly institution we have set-up an Interactive Voice Response (IVR) centre and ombudsman complaints Call Centre to tackle issues from customers,” he stated at the meeting.
Last year, Access Bank improved its gross earnings by 20 percent to N459.08 billion compared with N381.32 billion recorded in 2016, while the operating income rose to N302.6 billion in 2017 as against N272.6 billion in 2016.
However, the bank’s bottom-line contracted as pre-tax profit dropped by 11 percent from N90.34 billion in 2016 to N80.07 billion in 2017, while the post-tax profit went down to N61.99 billion from N71.44 billion.
During the AGM, shareholders of Access Bank said they were happy with the firm’s consistent dividend payment policy.
They also approved the payment of N18.8 billion cash dividend for the 2017 financial year, amounting to a final dividend of 40 kobo as well as 25 kobo.
Also, the shareholders gave the board of Access Bank the approval to raise up to N459 billion in new debt issue.
This could be raised through the issuance of non-convertible loans, notes, bonds and any other instruments whether by way of public offering, private placement, book building process reverse call inquiry or any other method or combination of methods.
Speaking on this development, Chairman of Access Bank, Mrs Mosun Belo-Olusoga, explained that the increase in the size of the prospective debt issuance demonstrated the commitment of the directors of the bank to strengthening its funding, capital base and profitability through a robust capital structure.
According to her, the proactive issuance programme is underscored by the growing scale of regulatory headwinds and economic realities which have put demands on liquidity and capital.
She said the board deems it necessary to further bolster the bank’s capital and funding base through the issuance of debt securities through any instrument considered appropriate for the bank to meet its growth objectives.
She noted the successful implementation of the bank’s five year strategic growth plan of 2013 to 2017 and the launch of a new five-year plan aimed at making the bank to become Africa’s gateway to the world by 2022.
“As we move on to the next phase of our growth story, the board is positive that we will achieve our growth aspirations through a sustained and sharp focus on our strategic priorities.
“Operating efficiency will remain at the heart of our decisions and we will continue to focus on effective execution of our strategy and on delivering value to shareholders,” Mrs Belo-Olusoga said.
By Modupe Gbadeyanka
To strengthen Europe-Africa trade ties, Access Bank has opened a new branch in Malta. It will focus on international trade finance, employing approximately 30 people in its initial phase, with plans for controlled expansion over time.
It was learned that this Maltese branch was established by Access Bank UK Limited, the subsidiary of Access Bank Plc, which is also the subsidiary of Access Holdings Plc, which is listed on the Nigerian Exchange (NGX) Limited.
Access Bank Malta Limited commenced operations after obtaining a banking licence from the European Central Bank (ECB) and the Malta Financial Services Authority (MFSA).
Access Bank said the licence marks a transformative milestone in bolstering Europe-Africa trade flows.
Malta, a renowned international financial centre, and a gateway between the two continents, is strategically positioned to play a pivotal role in advancing commerce and fostering economic partnerships.
This strategic expansion into Malta enables The Access Bank UK Limited to leverage growing trade opportunities between Europe and Africa.
It underscores the organisation’s commitment to driving global trade, financial integration, and supporting businesses across these regions.
“By establishing operations in Malta, we will gain a foothold in a market that bridges European and North African economies, moving us one step closer to our goal of becoming Africa’s Gateway to the World.
“It further enhances our bank’s capacity to support clients with innovative solutions tailored to cross-border trade and investment opportunities,” the chief executive of Access Bank, Mr Roosevelt Ogbonna, stated.
“Europe has emerged as Africa’s leading trading partner, driven by initiatives such as the Economic Partnership Agreements between the EU and African regions and the African Continental Free Trade Area (AfCFTA).
“With Europe-Africa economic relations entering a new phase, The Access Bank Malta Limited is ideally positioned to deepen trade and meet the financing and banking needs of our clients in these expanding markets,” the chief executive of Access Bank UK, Mr Jamie Simmonds, commented.
Also speaking, the chief executive of Access Bank Malta, Renald Theuma, said, “Malta is uniquely positioned as a bridge between Europe and Africa, making it an ideal location for our subsidiary. This move allows The Access Bank Malta Limited to engage more closely with customers in Europe and deliver tailored financial solutions that drive growth and connectivity across both continents.”
By Adedapo Adesanya
The International Finance Corporation (IFC) and Goldman Sachs have announced a new partnership with African banks, including Nigeria’s Zenith Bank and Stanbic IBTC Nigeria to support the Goldman Sachs 10,000 Women initiative, a joint programme launched in 2008 to provide access to capital and training for women entrepreneurs globally.
The two Nigerian banks are part of nine financial institutions from across Africa which have agreed to join the 10,000 Women initiative committing to leverage the business education and skills tools the programme provides to create more opportunities for women entrepreneurs across the continent by providing access to business education.
Others banks include Stanbic Bank Kenya, Ecobank Kenya, Ecobank Cote d’Ivoire, Equity Bank Group, Banco Millenium Atlantico – Angola, Baobab Group, and Orange Bank.
Speaking on this, Ms Charlotte Keenan, Managing Director at Goldman Sachs said – “10,000 Women has had a powerful impact to date, but we know that there are more women to reach and more potential to be realized.
“We are delighted to partner with IFC to supercharge the growth of women-owned businesses across Africa, and mainstream lending to female business leaders. We remain committed to supporting entrepreneurs with the access to education and capital that they need to scale.”
Since 2008, the 10,000 Women initiative has provided access to capital and business training to more than 200,000 women in 150 countries.
“This expanded initiative marks a significant step forward in creating equitable economic opportunities for women in Africa, enabling them to build stronger, more resilient businesses and to realize their entrepreneurial goals,” said Ms Nathalie Kouassi Akon, IFC’s Global Director for Gender and Economic Inclusion.
Goldman Sachs’ 10,000 Women initiative complements the Women Entrepreneurs Opportunity Facility (WEOF), launched in 2014 by Goldman Sachs and IFC as the first-of-its-kind global facility dedicated to expanding access to capital for women entrepreneurs in emerging markets.
By Aduragbemi Omiyale
In recognition of its unwavering commitment to fostering access to financing for Nigerian micro, small and medium enterprises (MSMEs), Development Bank of Nigeria Plc has been rewarded with the Financial Inclusion Leadership Award at the Champions of Inclusion Nigeria Financial Inclusion Awards.
This was at the 2024 International Financial Inclusion Conference (IFIC) organised by the Central Bank of Nigeria (CBN) in collaboration with the World Bank and other stakeholders.
The chief executive of the lender, Mr Tony Okpanachi, said the recognition affirms the company’s efforts in expanding access to financial services for MSMEs in Nigeria.
“We are honoured to receive the Financial Inclusion Leadership Award, which is a testament to our bank’s commitment to expanding access to financial services for all Nigerians. This award recognises our efforts to bridge the financial inclusion gap, particularly for a priority sector like the MSMEs.
“Additionally, this award is a validation of our strategic focus on driving financial inclusion for small businesses, and we are proud to be at the forefront of this initiative that drives that. We will continue to innovate and expand our financial inclusion programmes, ensuring that more Nigerian small and startup businesses have access to services,” he stated.
On his part, the Chief Operating Officer of DBN, Mr Bonaventure Okhaimo, said the accolade demonstrates the firm’s dedication to driving financial inclusion and economic growth in Nigeria.
“This award acknowledges our Bank’s innovative approach to widening opportunities for MSMEs in Nigeria to grow and scale their businesses,” he said.
“This award will motivate us to continue pushing the boundaries of financial inclusion, exploring more innovative solutions and partnerships to expand our reach and impact.
“We are committed to ensuring that more small businesses and startup enterprises in Nigeria have access to financial services, this award will further inspire us to accelerate our efforts in this regard,” he stated.
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